Combing through tons of features to find the best savings account can be time-consuming. Your savings account should offer a competitive annual percentage yield and tools that make growing your savings easier. CNET’s list of best savings accounts highlights many features that set these accounts apart from the competition.
To make it easier to choose the right account for you, we’ve gathered our top picks with outstanding products, services and other features.
Best savings accounts
It’s important to monitor savings account APYs, as they’re variable and can change at any time. Here’s a look at CNET’s top-ranked savings accounts.
Ally Bank | 4.00% | $0 | No |
EverBank | 5.05% | $0 | No |
Capital One Bank | 4.25% | $0 | Yes |
| TAB Bank | 5.02% | $0 | No |
| Newtek Bank | 5.25% | $0 | No |
| Discover | 4.10% | $0 | No |
| Laurel Road | 4.80% | $0 | No |
Synchrony Bank | 4.50% | $0 | No |
| Varo Bank | 3.00% – 5.00% | $0 | No |
| Bask Bank | 5.10% | $0 | No |
LendingClub | 4.80% to 5.30% | $0 | No |
| BMO Alto | 4.60% | $0 | No |
Marcus by Goldman Sachs | 4.25% | $0 | No |
Note: APYs as of Sept. 26, 2024. APYs may vary by region for some products.
Ally Bank
Best innovative savings tools
-
APY
APY = Annual Percentage Yield.
- 4.00%
- Min. deposit to open
- $0
- Branch access
- No
Ally’s online savings account pays a competitive APY on all balances, with no monthly fees or minimum balance requirements. We like Ally’s digital tools to help you reach your savings goals. Saving buckets allow you to organize your goals as sub-accounts, and savings boosters can help you automate savings.
While you can’t deposit cash with Ally, a fee-free network of more than 43,000 ATMs and a $10 per month ATM fee reimbursement make it easy to access your money when you need it.
Monthly fees: $0
- No monthly fees, minimum deposit or balance requirements.
- Live support available 24/7.
- Digital tools such as roundups and savings. buckets help automate savings.
Ally’s online savings account pays a competitive APY on all balances, with no monthly fees or minimum balance requirements. We like Ally’s digital tools to help you reach your savings goals. Saving buckets allow you to organize your goals as sub-accounts, and savings boosters can help you automate savings.
While you can’t deposit cash with Ally, a fee-free network of more than 43,000 ATMs and a $10 per month ATM fee reimbursement make it easy to access your money when you need it.
Monthly fees: $0
- No monthly fees, minimum deposit or balance requirements.
- Live support available 24/7.
- Digital tools such as roundups and savings. buckets help automate savings.
-
APY
APY = Annual Percentage Yield.
- 5.05%
- Min. deposit to open
- $0
- Branch access
- No
EverBank, formerly TIAA, offers a high-yield savings account with a 5.15% APY on all balances. The bank has several physical branches in Florida, but its online tools and mobile app make opening and managing an account seamless from anywhere in the US. We also like that you can access your money from a network of 100,000 fee-free ATMs and get reimbursed for up to $15 per month in non-network ATM fees.
Monthly fees: $0
- No monthly fees, minimum balance or balance requirements.
- Yield Pledge promise guarantees APYs remain competitive.
- Supports mobile check deposits via app.
EverBank, formerly TIAA, offers a high-yield savings account with a 5.15% APY on all balances. The bank has several physical branches in Florida, but its online tools and mobile app make opening and managing an account seamless from anywhere in the US. We also like that you can access your money from a network of 100,000 fee-free ATMs and get reimbursed for up to $15 per month in non-network ATM fees.
Monthly fees: $0
- No monthly fees, minimum balance or balance requirements.
- Yield Pledge promise guarantees APYs remain competitive.
- Supports mobile check deposits via app.
Capital One Bank
Best rates for big banks with physical branches
-
APY
APY = Annual Percentage Yield.
- 4.25%
- Min. deposit to open
- $0
- Branch access
- Yes
There are no monthly maintenance fees or minimum balance requirements for Capital One 360 Performance Savings. Because Capital One doesn’t offer ATM cards or checks, you’ll need to visit a physical branch to withdraw your cash or transfer money. This savings option may work best as a complement to your checking account.
The Capital One mobile app makes it easy to snap pictures of checks to deposit them. Sending money to another bank account with ACH transfers is free, but the process may take one to three days. Outgoing wire transfers incur a $30 fee, and cashier’s checks purchased at physical locations cost $10.
Monthly fees: $0
- No monthly fees, minimum deposit or balance requirements.
- Banking app supports mobile check deposits.
- Doesn’t offer ATM or debit cards with savings account.
There are no monthly maintenance fees or minimum balance requirements for Capital One 360 Performance Savings. Because Capital One doesn’t offer ATM cards or checks, you’ll need to visit a physical branch to withdraw your cash or transfer money. This savings option may work best as a complement to your checking account.
The Capital One mobile app makes it easy to snap pictures of checks to deposit them. Sending money to another bank account with ACH transfers is free, but the process may take one to three days. Outgoing wire transfers incur a $30 fee, and cashier’s checks purchased at physical locations cost $10.
Monthly fees: $0
- No monthly fees, minimum deposit or balance requirements.
- Banking app supports mobile check deposits.
- Doesn’t offer ATM or debit cards with savings account.
TAB Bank
Best for truckers
-
APY
APY = Annual Percentage Yield.
- 5.02%
- Min. deposit to open
- $0
- Branch access
- No
TAB Bank, an online-only bank, caters to transportation industry employees such as truckers. There’s no minimum balance or deposit required, and you need only 1 cent in your account to start earning interest.
We like that you can sign up for mobile alerts and text messages about your account activity. For example, you can receive alerts about withdrawals when your account balance falls below a certain amount. TAB also has extended customer service hours — Monday through Friday from 6 a.m. to 7 p.m. MT and Saturdays from 9 a.m. to 3 p.m. MT, excluding federal holidays.
Monthly fees: $0
- No monthly fees, minimum deposit or balance requirements.
- $5 monthly fee for paper statements.
- Full suite of deposit accounts available.
- Mobile check deposits via app, plus text alerts.
- Extended customer service hours.
TAB Bank, an online-only bank, caters to transportation industry employees such as truckers. There’s no minimum balance or deposit required, and you need only 1 cent in your account to start earning interest.
We like that you can sign up for mobile alerts and text messages about your account activity. For example, you can receive alerts about withdrawals when your account balance falls below a certain amount. TAB also has extended customer service hours — Monday through Friday from 6 a.m. to 7 p.m. MT and Saturdays from 9 a.m. to 3 p.m. MT, excluding federal holidays.
Monthly fees: $0
- No monthly fees, minimum deposit or balance requirements.
- $5 monthly fee for paper statements.
- Full suite of deposit accounts available.
- Mobile check deposits via app, plus text alerts.
- Extended customer service hours.
Newtek Bank
Best for business owners
-
APY
APY = Annual Percentage Yield.
- 5.25%
- Min. deposit to open
- $0
- Branch access
- No
Newtek Bank is an online-only subsidiary of Newtek One, a financial services business company. It offers an attractive APY for all balance levels, but you can make only six withdrawals per statement cycle. Like Capital One, this account doesn’t come with an ATM card, so you’ll need to be comfortable transferring money online.
You can open as many personal banking accounts as needed and manage them all through an online banking platform or mobile app. If you don’t want to manage your account online or need to make more than six withdrawals a month, it’s best to consider other options.
Monthly fees: $0
- No monthly fees, minimum deposit or balance requirements.
- Mobile check deposits via app.
- No service or transaction fees.
- Limit of six withdrawals per statement cycle.
- Live customer support available 24/7.
Newtek Bank is an online-only subsidiary of Newtek One, a financial services business company. It offers an attractive APY for all balance levels, but you can make only six withdrawals per statement cycle. Like Capital One, this account doesn’t come with an ATM card, so you’ll need to be comfortable transferring money online.
You can open as many personal banking accounts as needed and manage them all through an online banking platform or mobile app. If you don’t want to manage your account online or need to make more than six withdrawals a month, it’s best to consider other options.
Monthly fees: $0
- No monthly fees, minimum deposit or balance requirements.
- Mobile check deposits via app.
- No service or transaction fees.
- Limit of six withdrawals per statement cycle.
- Live customer support available 24/7.
Discover
Large network of fee-free ATMs
-
APY
APY = Annual Percentage Yield.
- 4.10%
- Min. deposit to open
- $0
- Branch access
- No
Discover Bank offers a competitive APY on its online savings account. We like that Discover eliminated most fees on its deposit accounts in June 2019 — you won’t pay a fee for official bank checks, excessive withdrawals or closing the account.
Discover Bank is an online-only bank that doesn’t accept cash deposits or offer in-person assistance, so your account is managed entirely online. However, the mobile app, network of 60,000 fee-free ATMs and 24/7 live customer support make Discover Bank worth considering.
Monthly fees: $0
- No monthly fees, minimum deposit or balance requirements.
- Mobile check deposits via app.
- Live customer support available 24/7.
- No withdrawal limit.
Discover Bank offers a competitive APY on its online savings account. We like that Discover eliminated most fees on its deposit accounts in June 2019 — you won’t pay a fee for official bank checks, excessive withdrawals or closing the account.
Discover Bank is an online-only bank that doesn’t accept cash deposits or offer in-person assistance, so your account is managed entirely online. However, the mobile app, network of 60,000 fee-free ATMs and 24/7 live customer support make Discover Bank worth considering.
Monthly fees: $0
- No monthly fees, minimum deposit or balance requirements.
- Mobile check deposits via app.
- Live customer support available 24/7.
- No withdrawal limit.
Laurel Road
Best for health professionals
-
APY
APY = Annual Percentage Yield.
- 4.80%
- Min. deposit to open
- $0
- Branch access
- No
Laurel Road, the digital arm of KeyBank, offers an online savings account with no minimum deposit or balance requirements to earn its competitive APY. Like most online banks, Laurel Road doesn’t accept cash deposits, so you’ll need to transfer money electronically to fund your account.
Laurel Road began as a student loan originator in 2013. In 2019, it was acquired by KeyBank and now offers checking, savings and loan products primarily geared toward health care and business professionals nationwide. Its digital platform merges technology with banking services to offer a high-yield rate that applies to the entire balance.
Monthly fees: $0
- No monthly fees, minimum deposit or balance requirements.
- Mobile check deposits via app.
- Withdrawal transactions limited to seven per month.
Laurel Road, the digital arm of KeyBank, offers an online savings account with no minimum deposit or balance requirements to earn its competitive APY. Like most online banks, Laurel Road doesn’t accept cash deposits, so you’ll need to transfer money electronically to fund your account.
Laurel Road began as a student loan originator in 2013. In 2019, it was acquired by KeyBank and now offers checking, savings and loan products primarily geared toward health care and business professionals nationwide. Its digital platform merges technology with banking services to offer a high-yield rate that applies to the entire balance.
Monthly fees: $0
- No monthly fees, minimum deposit or balance requirements.
- Mobile check deposits via app.
- Withdrawal transactions limited to seven per month.
Synchrony Bank
Best for out-of-network ATM fee reimbursements
-
APY
APY = Annual Percentage Yield.
- 4.50%
- Min. deposit to open
- $0
- Branch access
- No
Synchrony’s high-yield savings account has no monthly maintenance fees or minimum balance requirements and offers a higher-than-average yield. Synchrony account holders get an ATM card and can withdraw money fee-free from thousands of ATMs featuring the Visa Plus or Accel logos. Synchrony doesn’t charge you to use non-network ATMs and reimburses you up to $5 per month for other banks’ ATM fees.
Outgoing wire transfers cost $25. Synchrony users are limited to six withdrawals per month. There are no listed fees for surpassing that limit, but the bank retains the right to close your account if you repeatedly break the maximum number of withdrawals.
Monthly fees: $0
- No monthly fees, minimum balance or balance requirements.
- Banking app supports mobile check deposits.
- Optional ATM card available for savings accounts.
- Rebates up to $5 per month for non-network ATM fees.
Synchrony’s high-yield savings account has no monthly maintenance fees or minimum balance requirements and offers a higher-than-average yield. Synchrony account holders get an ATM card and can withdraw money fee-free from thousands of ATMs featuring the Visa Plus or Accel logos. Synchrony doesn’t charge you to use non-network ATMs and reimburses you up to $5 per month for other banks’ ATM fees.
Outgoing wire transfers cost $25. Synchrony users are limited to six withdrawals per month. There are no listed fees for surpassing that limit, but the bank retains the right to close your account if you repeatedly break the maximum number of withdrawals.
Monthly fees: $0
- No monthly fees, minimum balance or balance requirements.
- Banking app supports mobile check deposits.
- Optional ATM card available for savings accounts.
- Rebates up to $5 per month for non-network ATM fees.
Varo Bank
Best for low balances
-
APY
APY = Annual Percentage Yield.
- 3.00% – 5.00%
- Min. deposit to open
- $0
- Branch access
- No
The Varo Online Savings Account has a tiered APY scale, earning you 5.00% APY for balances between $0 and $5,000 — as long as you follow a few requirements. To earn that yield, you must have direct deposits totaling $1,000 each month and end the month with a positive account balance. Note that any amount over $5,000 earns only 3.00% APY.
Varo Online Savings includes no monthly maintenance fees or minimum balance requirements. If your account balance remains at zero for nine months, Varo reserves the right to close your account.
Monthly fees: $0
- No monthly fees, minimum deposit or balance requirements.
- Banking app supports mobile check deposits.
- Roundup tools to automate savings.
- Highest APY limited to balances up to $5,000.
- A minimum of $1,000 in monthly direct deposits required to earn interest.
The Varo Online Savings Account has a tiered APY scale, earning you 5.00% APY for balances between $0 and $5,000 — as long as you follow a few requirements. To earn that yield, you must have direct deposits totaling $1,000 each month and end the month with a positive account balance. Note that any amount over $5,000 earns only 3.00% APY.
Varo Online Savings includes no monthly maintenance fees or minimum balance requirements. If your account balance remains at zero for nine months, Varo reserves the right to close your account.
Monthly fees: $0
- No monthly fees, minimum deposit or balance requirements.
- Banking app supports mobile check deposits.
- Roundup tools to automate savings.
- Highest APY limited to balances up to $5,000.
- A minimum of $1,000 in monthly direct deposits required to earn interest.
Bask Bank
Best for American Airlines loyalty members
-
APY
APY = Annual Percentage Yield.
- 5.10%
- Min. deposit to open
- $0
- Branch access
- No
Bask Bank, an online subsidiary of Texas Capital Bank, offers two different types of savings accounts. Its Mileage Savings Account gives American Airlines mileage back for every dollar saved annually, while its Interest Savings Account provides a competitive APY that’s at, or near, the top of the current bank savings account rates.
The biggest limitation for Bask Bank savings is that the bank doesn’t allow joint account ownership.
Monthly fees: $0
- No monthly fees, minimum deposit or balance requirements.
- Two savings account options available — Miles Savings and Interest Savings.
- Doesn’t offer ATM or debit cards with savings account.
Bask Bank, an online subsidiary of Texas Capital Bank, offers two different types of savings accounts. Its Mileage Savings Account gives American Airlines mileage back for every dollar saved annually, while its Interest Savings Account provides a competitive APY that’s at, or near, the top of the current bank savings account rates.
The biggest limitation for Bask Bank savings is that the bank doesn’t allow joint account ownership.
Monthly fees: $0
- No monthly fees, minimum deposit or balance requirements.
- Two savings account options available — Miles Savings and Interest Savings.
- Doesn’t offer ATM or debit cards with savings account.
LendingClub
Best for consistent savers
-
APY
APY = Annual Percentage Yield.
- 4.80% to 5.30%
- Min. deposit to open
- $0
- Branch access
- No
LendingClub recently launched a LevelUp Savings account that rewards consistent savers with competitive rates. You’ll qualify for the highest rate if you deposit at least $250 per month. Deposits from any source — such as direct deposit or electronic transfers — count towards the minimum monthly requirement.
If your monthly deposit drops below $250 after the first two months, then the standard APY will apply. Both rates apply to the entire balance.
We also like that the LevelUp Savings account doesn’t charge a monthly fee or have a minimum balance requirement. Learn more about this account and its features in our CNET review.
Monthly fees: $0
- No monthly fees, minimum deposit or minimum balance requirements.
- Banking app supports mobile check deposits.
- Cash deposits accepted at select ATMs.
- Unlimited non-network ATM fee reimbursements.
LendingClub recently launched a LevelUp Savings account that rewards consistent savers with competitive rates. You’ll qualify for the highest rate if you deposit at least $250 per month. Deposits from any source — such as direct deposit or electronic transfers — count towards the minimum monthly requirement.
If your monthly deposit drops below $250 after the first two months, then the standard APY will apply. Both rates apply to the entire balance.
We also like that the LevelUp Savings account doesn’t charge a monthly fee or have a minimum balance requirement. Learn more about this account and its features in our CNET review.
Monthly fees: $0
- No monthly fees, minimum deposit or minimum balance requirements.
- Banking app supports mobile check deposits.
- Cash deposits accepted at select ATMs.
- Unlimited non-network ATM fee reimbursements.
BMO Alto
Best for use as a secondary savings account
-
APY
APY = Annual Percentage Yield.
- 4.60%
- Min. deposit to open
- $0
- Branch access
- No
BMO Alto is the online-only arm of BMO Financial Group. BMO Alto offers two deposit accounts: the BMO Alto online savings account and the BMO Alto online certificate of deposit. While the savings account earns a competitive APY, it ranks lower on our best list because it doesn’t provide a mobile app to manage account transactions. Account access is available only through the BMO Alto website.
However, the savings account is still worth considering because there are no monthly fees, minimum deposits required to open or minimum balances to maintain. The unlimited number of transfers and withdrawals permitted is an added benefit.
This account is best paired with other bank accounts because it doesn’t provide a debit card or ATM access. Money in this account can be accessed or deposited only through externally linked bank accounts.
Monthly fees: $0
- No monthly fees or balance requirements.
- Mobile check deposits via app.
- Limit of six withdrawals per statement cycle.
BMO Alto is the online-only arm of BMO Financial Group. BMO Alto offers two deposit accounts: the BMO Alto online savings account and the BMO Alto online certificate of deposit. While the savings account earns a competitive APY, it ranks lower on our best list because it doesn’t provide a mobile app to manage account transactions. Account access is available only through the BMO Alto website.
However, the savings account is still worth considering because there are no monthly fees, minimum deposits required to open or minimum balances to maintain. The unlimited number of transfers and withdrawals permitted is an added benefit.
This account is best paired with other bank accounts because it doesn’t provide a debit card or ATM access. Money in this account can be accessed or deposited only through externally linked bank accounts.
Monthly fees: $0
- No monthly fees or balance requirements.
- Mobile check deposits via app.
- Limit of six withdrawals per statement cycle.
Marcus by Goldman Sachs
Best for managing savings and investment accounts together
-
APY
APY = Annual Percentage Yield.
- 4.25%
- Min. deposit to open
- $0
- Branch access
- No
Marcus by Goldman Sachs is the online-only banking arm of the investment behemoth. If you’re looking to manage all of your savings and investment accounts in one place, Marcus might be the right fit. This bank offers competitive savings rates, along with several interest-earning deposit and investment accounts.
In addition to high-yield rates, there’s no minimum required to open a Marcus online savings account, no monthly maintenance fee and no minimum balance requirement. You can also contact a live customer service representative 24/7.
Monthly fees: $0
- No monthly fees, minimum deposit or balance requirements.
- Mobile check deposits via app.
- Does not accept cash deposits.
Marcus by Goldman Sachs is the online-only banking arm of the investment behemoth. If you’re looking to manage all of your savings and investment accounts in one place, Marcus might be the right fit. This bank offers competitive savings rates, along with several interest-earning deposit and investment accounts.
In addition to high-yield rates, there’s no minimum required to open a Marcus online savings account, no monthly maintenance fee and no minimum balance requirement. You can also contact a live customer service representative 24/7.
Monthly fees: $0
- No monthly fees, minimum deposit or balance requirements.
- Mobile check deposits via app.
- Does not accept cash deposits.
What experts are saying about savings accounts
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“Some people assume they’re going to get the best rates with brick-and-mortar banks like Bank of America, J.P. Morgan and Wells Fargo. But these large banks offer barely any interest on your savings.”
“Not having access to a branch location can feel unfamiliar. But there are ways to feel more comfortable before opening an online savings account.”
“Make sure the bank is FDIC- or NCUA-insured. That way, your money is protected for up to $250,000 per person, per bank in case of bank failure.”
The best option for most people looking to grow their savings is a high-yield savings account, which you’ll often find with an online bank.
“Some people assume they’re going to get the best rates with brick-and-mortar banks like Bank of America, J.P. Morgan and Wells Fargo,” said Shang Saavedra, founder and CEO of Save My Cents, a personal finance education platform. These large banks offer barely any interest on your savings, she said.
Online-only banks don’t have physical branches to maintain. With lower overhead costs, they can pass some of these savings down to customers through higher interest rates and fewer fees on savings accounts.
Right now, some online-only banks offer over 5% for savings accounts, compared with the near 0% rates many big banks are offering. That’s why Saavedra recommends turning to an online bank to grow your savings.
Moving your funds to a fully online bank can feel daunting, particularly if you’re unfamiliar with some of the financial institutions offering the best APYs right now.
“Not having access to a branch location can feel unfamiliar,” said Rita-Soledad Fernández Paulino, a personal finance coach and founder of Wealth Para Todos, who goes by Soledad. There are ways to feel more comfortable before opening an online savings account.
First, make sure the bank is FDIC- or NCUA-insured, said Anna N’Jie-Konte, a certified financial planner. That way, your money is protected for up to $250,000 per person, per bank in case of bank failure. You can also check the bank’s Better Business Bureau rating and online reviews, she added. Another way to make sure the bank is insured is to look for the FDIC or NCUA certification number on the bank’s website, Saavedra said.
There are some cases when a traditional savings account at a physical bank may work better for you. For example, if you’re a restaurant server who gets cash tips, it might make sense to have a savings account at a brick-and-mortar bank, N’Jie-Konte said. She stresses that unless you need a perk only a big bank can offer, like in-person assistance, an online bank with higher savings rates is generally the better option.
How to choose a savings account
When choosing a savings account, consider these factors.
Annual percentage yield
The higher the APY, the more you can earn. Compare rates across multiple banks to determine which accounts offer the best return on your money.
If your bank doesn’t offer a competitive APY, compare rates among banks you feel comfortable with. There’s no harm in opening multiple savings accounts, but make sure you can meet any minimum balance or deposit requirements.
For instance, you may keep your traditional savings account if it’s linked to your checking account. You can also open a high-yield savings account to earn better interest on your money.
Online vs. brick-and-mortar bank
Think about how you prefer to manage your money. If you’re regularly paid in cash, for example, you may choose a bank with a physical location.
Banks with branch access can come in handy if you need to deposit or withdraw cash, N’Jie-Konte said. Some online-only savings accounts don’t offer ATM access or cash deposits, but you can transfer money between accounts when needed.
If you aren’t worried about access to cash, an online bank generally offers lower fees and better savings rates. N’Jie-Konte notes that feeling comfortable with your financial institution is also important. If you feel safer with a bank you can walk into and don’t mind the trade-off of lower savings rates, a big bank, local credit union or neighborhood financial institution may be the right place to keep your savings.
If earning higher interest and having access to physical branches is important, consider a savings account at a bank that offers both, like Capital One or Citibank.
Savings account requirements
Make sure you can meet any minimum balance or deposit requirements. Also watch out for APY thresholds — some banks may offer a high rate but only for the first $5,000 of your savings, for example. Before opening an account, read the fine print to understand the account’s terms and make sure you feel comfortable with any requirements to avoid any surprise fees.
Account features and perks
How you manage your savings account matters. Most banks offer mobile check deposits to your savings account. Online-only banks tend to have longer transfer times when moving money between accounts. So you may have to wait around three days instead of withdrawing money immediately from an ATM with a traditional savings account, Soledad said.
Pros and cons of opening a savings account
Savings accounts have plenty of benefits, but there are also some drawbacks to consider.
Pros
Growing your savings: You can reach your savings goal faster by earning interest on your account balance.
Federal protection: Balances at federally insured banks and credit unions are protected by the Federal Deposit Insurance Corp. or National Credit Union Administration for up to $250,000 per person, per institution.
Low risk: A savings account is considered a safe place to keep your money since it’s insured and doesn’t face market volatility.
Cons
Other options may pay you more: Other low-risk savings options such as a CD may pay higher interest rates.
Limited access to your funds: Some banks limit how many withdrawals you can make per month. If you need to access your money frequently, you could incur a fee.
Fees: Some banks charge monthly maintenance fees that can eat into the interest you earn.
Different types of savings accounts
There are savings accounts available for specific types of people, including students, seniors, veterans, small-business owners and high-net-worth individuals. In general, there are four main types of savings accounts.
Traditional savings account: Usually, you’ll find a traditional savings account at a brick-and-mortar bank or local credit union. Oftentimes, this account is connected to a checking account. You won’t earn much interest compared with high-yield savings accounts, but you will have ATM access to make cash deposits and withdrawals. Most of these accounts are limited to six monthly withdrawals, although ATM withdrawals may be excluded from that restriction.
High-yield savings account: A high-yield savings account works just like a traditional savings account, but it offers rates several times higher than the national average. These accounts are mostly at online banks, credit unions and neobanks (newer banks that offer all banking services online or through a mobile app).
In most cases, you won’t have in-person access to your account, so you must be comfortable managing your finances online or using a mobile app. There may also be a limit on the number of withdrawals you can make per month, and some accounts not be linked to ATM networks. You may incur an ATM fee if you need to withdraw or deposit money from an out-of-network ATM.
Money market account: A money market account bridges the gap between a checking and savings account. This account usually requires a higher balance to earn interest and keep your account in good standing. You may be able to make only a limited number of withdrawals per month. Many money market accounts come with checking account features, such as a debit card, ATM access and check writing abilities.
Note: Money market accounts aren’t the same as money market funds.
Certificates of deposit: A certificate of deposit offers a fixed interest rate for a set period, known as the term. If you withdraw your money before the term ends, you’ll pay an early withdrawal penalty, which is usually a few weeks or months of interest, depending on the bank. CDs allow only a one-time deposit. Most CDs have terms from three months to five years.
Specialty CDs give you more flexibility. These include add-on CDs, which let you make additional deposits after the first one, and no-penalty CDs, which let you withdraw money early without paying a fee.
How much should you keep in a savings account?
Deciding how much you should save each month can vary based on your priorities and expenses. The FDIC or NCUA insures balances on savings accounts up to $250,000 per person, per bank. You should make sure your combined balances don’t exceed the insured amount. If they do, consider moving the excess amount to another insured banking institution.
How to open a savings account
After you’ve narrowed down which account you want to open, complete the bank’s application process. While this varies from bank to bank, here’s what to expect.
- Choose a bank: Review different banks and credit unions to find the best option for your needs. Many financial institutions let you complete the application process online, but you can also open one in person if the bank has physical branches.
- Provide your information: Provide a government-issued form of ID to verify your identity. You’ll also be asked to include other personal information, such as your Social Security number or Individual Taxpayer Identification Number, physical address and contact information.
- Fund your account: Follow the prompts to complete the application and make the minimum deposit if your bank requires one. It’s best to follow security practices and enable security features when completing the application to protect your information.
FAQs
A savings account is a type of deposit account held at a bank or credit union that allows you to store cash until you plan to use it in the future. Like a checking account, you can deposit and withdraw money when needed. You can also earn compound interest on your balance.
Traditional savings accounts typically offer between 0.01% and 0.15%, while the average high-yield savings account APYs for banks CNET tracks is 4.69%.
Checking accounts are best suited for managing routine financial transactions, such as paying rent or utilities, via debit card, paper check or mobile app. Most checking accounts don’t offer interest, and those that do usually provide a meager rate of 0.1% or less.
Traditional savings accounts offer rates that are normally well below the national average, but online-only banks typically offer the highest yields for savings accounts. These accounts provide a safe place to store money while keeping it accessible to withdraw penalty-free when needed. Many savings accounts don’t have debit card access or check-writing privileges.
In the past, the Federal Reserve limited account holders to six withdrawals a month to preserve liquidity for financial institutions. In response to the pandemic, the Federal Reserve suspended Regulation D, allowing unlimited monthly withdrawals without penalty. Some financial institutions may continue to limit the number of withdrawals.
Yes. Your bank will send you a 1099-INT form each year when your savings account earns more than $10 in interest, which you’ll need to include in your tax return.
Online savings accounts from federally insured banks and credit unions are insured by up to $250,000 by the FDIC or NCUA, respectively. This makes such savings accounts low-risk places to keep your money.
Rates on savings accounts are variable and can change at any time. Each bank has a unique process for determining APYs, but most accounts are loosely connected to the federal funds rate — the interest rate set by the Federal Reserve, which determines how much it costs banks to lend to each other.
No. Typically, online-only banks and many credit unions offer savings accounts that don’t include monthly fees. Review our list of the best no-fee savings accounts that offer great APYs.
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Our methodology
CNET reviewed savings accounts at more than 50 traditional and online banks, credit unions and financial institutions with nationwide services. Each account received a score between one (lowest) and five (highest). The savings accounts listed here are all insured up to $250,000 per person, per account category, per institution, by the Federal Deposit Insurance Corporation or National Credit Union Administration.
CNET evaluates the best savings accounts with a set of established criteria that compares annual percentage yields, monthly fees, minimum deposits or balances, and access to physical branches. None of the banks on our list charge monthly maintenance fees. An account will rank higher for offering any of the following perks:
- Account bonuses
- Automated savings features
- Wealth management consulting/coaching services
- Cash deposits
- Extensive ATM networks and/or ATM rebates for out-of-network ATM use
An account will rank lower if it doesn’t have a professional-looking website or doesn’t provide an ATM card or if it imposes restrictive residency requirements or fees for exceeding monthly transaction limits.
Savings accounts researched
Alliant Credit Union, Ally, Amerant, America First FCU, American Express, Apple Federal Credit Union, Bank of America, BankPurely, Barclays, Bask Bank, Bellco Credit Union, Bethpage, BMO Alto, BMO Harris, Bread Savings, Capital One, Chase, CIBC Bank, CIT Bank, Citizens, Citizens Bank, Community Wide Federal Credit Union, Connexus Credit Union, Consumers Credit Union, Discover, Dollar savings Direct, First Internet Bank of Indiana, Forbright, Laurel Road, LendingClub, Marcus by Goldman Sachs, My Banking Direct, Newtek Bank, Panacea Financial, PenFed Credit Union, PNC, Popular Bank, Quontic Bank, RBMax, Rising Bank, SoFi, Synchrony, TAB Bank, TIAA Bank, U.S. Bank, UFB Direct, Upgrade Premier, Varo, Wells Fargo
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